Abstract
The paper examines the influence of financial distress on restructuring by life cycle and the recovery of Vietnamese firms by Logit regression model with random effect. The study found that financial distress may take place at any stage of the life cycle especially during times of decline. The research results show that financial distress make companies enhance restructuring their managerial restructuring, reducing investing activities and laying off employees. As it matures, a firm with financial distress is less likely to engage in M&A restructuring. Restructuring through investing activities reduction brings about recovery to companies in distress, but the company’s recovery is less affected by its life cycle.